Gold prices are hovering above $1,700 an ounce and ETFs that invest in the precious metal could move higher in 2012 on Europe’s lingering debt crisis and further monetary easing from central banks.

Gold prices dropped 1.2% for the week ended Feb. 10, settling at around $1,725 an ounce, according to the Wall Street Journal.

After Eurozone leaders withheld approval of the second Greece bailout, investors started moving back into cash. The stronger U.S. greenback also contributed to the small sell-off in gold. Meanwhile, others jumped ship, anticipating a sharper downturn.

Looking ahead, Greece will dominate the gold outlook. However, according to a Kitco News Gold Survey on expected gold prices, most analysts expect prices to rise this week but still stay within the current price range, reports Forbes. [Gold ETFs and Greece: What’s Next?]

“There is good bargain hunting as gold dips below $1,710 area,” Afshin Nabavi, head of trading at trading house MKS Finance, said in the Forbes article.

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